⚡️A very suitable financial method for BTC/ETH holders——

After writing about Pendle Boros last time, many people wondered if this is only suitable for institutional players like Ethena.

Actually, it’s not. Retail investors holding BTC/ETH spot can also easily use @boros_fi for simple arbitrage!

👇👇Let’s give an easy-to-understand example——

Holding BTC spot (the basis for price hedging) + shorting BTC perpetual contracts (receiving funding fees) + shorting BTC-YU (locking in high funding fee rates)

Assumption: You already hold 1 $BTC, the current price is 10,000, and the period is 90 days, locking in Implied APR=8% on Boros by shorting YU.

Scenario 1⃣: The funding rate remains at 8% throughout (consistent with the locked-in rate)

Perpetual short funding fee earnings: $100,000 × 8% × (90/365) ≈ $1972

Earnings from shorting YU: actual rate = locked rate, no profit or loss → $0

Total earnings: $1972 + $0 = $1972 (8% annualized)

Scenario 2⃣: The funding rate drops to 5% (lower than the locked-in rate)

Perpetual short funding fee earnings: $100,000 × 5% × (90/365) ≈ $1232

Earnings from shorting YU: profit = (locked rate - actual rate) corresponding earnings

$100,000 × (8% - 5%) × (90/365) = $740

Total earnings: $1232 + $740 = $1972

Scenario 3⃣: The funding rate rises to 11% (higher than the locked-in rate)

Perpetual short funding fee earnings: $100,000 × 11% × (90/365) ≈ $2712

Earnings from shorting YU: loss = (actual rate - locked rate) corresponding cost, $100,000 × (11% - 8%) × (90/365) = $740

Total earnings: $2712 - $740 = $1972

So no matter how the rate changes, the “profit/loss” from the perpetual and the “loss/profit” from YU can always offset each other, and the final earnings you can get is the Implied APR you locked on Boros.

Moreover, it does not affect your spot position, making it very suitable for those of us who do not plan to liquidate our holdings in the short term!

By the way, Boros is really impressive! It has only been online for 9 days, and the technical side has been rising all the way——

- TVL increased from $1.78M to $2.75M (+53%)

- Trading volume reached $111.4M

- Opening limits have been raised multiple times to $28.55M

- @pendle_fi token price increased by 41.9%

It seems that market demand is still quite strong!

So I strongly recommend that you start with a small position to try it out. Those who have played with Hyperliquid, understand funding rates, should find this product from Boros very easy to grasp!

Stealing a picture from @defi_mago to help with understanding——